Consider imposing excise tax on sugary drinks

VƯƠNG TRẦN |

Recognizing that “overweight and obesity are a problem for children”, many experts believe that it is necessary to impose a special consumption tax on sugary drinks to reduce consumption and protect the health of future generations.

Childhood obesity rates are rising

On November 24, the National Assembly's Committee for Culture and Education - in coordination with UNICEF, organized a workshop to provide comments on the Law on Special Consumption Tax (SCT) on applying SCT to sugary drinks, preventing and combating overweight and obesity in children.

Vice Chairman of the National Assembly's Committee for Culture and Education Ta Van Ha and Mr. Maharajan Muthu - Head of the Program for Child Survival, Development and Environment, UNICEF - co-chaired the Workshop.

Emphasizing that “childhood obesity is a global problem that requires urgent action,” Associate Professor, Dr. Truong Tuyet Mai - Deputy Director of the National Institute of Nutrition - pointed out many harmful effects of sugary drinks on health, especially on children.

Accordingly, consumption of sugary drinks in childhood was associated with a higher risk of obesity and overweight/obesity at age 5. Each additional 100ml of sugary drink consumed per day was associated with a higher BMI and a 1.2-fold increased risk of overweight/obesity at age 6. Frequent consumption of sugary drinks was associated with a 1.36-fold increased risk of hypertension.

UNICEF Vietnam nutrition expert Do Hong Phuong emphasized that "overweight and obesity are a problem for children".

In Vietnam, Ms. Do Hong Phuong said that among children aged 5-19, the rate of overweight and obesity has increased from 8.5% (2010) to 19% (2020). Of which, in urban areas, it is 26.8%, higher than the average rate in Southeast Asia (17.3%) and higher than the rate in low- and middle-income countries in the region.

Ms. Do Hong Phuong predicted that without effective and timely interventions, it is estimated that by 2030, nearly 2 million children aged 5-19 will be overweight or obese. Overweight or obese children are at high risk of many non-communicable diseases such as diabetes, cardiovascular disease, cancer, other chronic diseases and premature death. On the other hand, overweight or obese children may be negatively affected psychologically and socially, suffer from weight prejudice, isolation, depression, lack of confidence, and poor academic performance.

Measures to reduce sugary drinks

Dr. Nguyen Tuan Lam - WHO expert - stated that TTDB is an effective measure to reduce the use of sugary drinks.

According to WHO's overview, based on the price elasticity of demand for sugary drinks, a 10% price increase will reduce consumption by about 10-11%. World Bank data in 2023 shows that about 104 countries in the world apply nationwide excise taxes on sugary drinks. The effectiveness of a tax on sugary drinks will help reduce consumption, increase budget revenue and have a positive impact on consumer health.

According to Dr. Nguyen Tuan Lam, now is a very appropriate and necessary time to impose a tax on sugary drinks. At the same time, he also believes that a tax of 10% of the manufacturer's selling price, applied for 1 year, is very small and has little impact. Therefore, Vietnam should consider applying a roadmap to increase the tax annually so that the tax on sugary drinks is higher to protect the health of future generations.

Giving her opinion on the discussion, Delegate Bui Thi Quynh Tho - Member of the National Assembly's Economic Committee - expressed her agreement with the 10% excise tax on sugary drinks. This ensures the harmony of the overall relationship between producers and consumers and socio-economic development. Delegate Tho also suggested that the drafting agency consider making recommendations on other sugary products as appropriate.

National Assembly Delegate Leo Thi Lich - Standing Member of the National Assembly's Ethnic Council - expressed concerns and raised questions about whether the 10% TTDB tax rate and the prescribed sugar content of 5g/100ml were appropriate or not? Have these rates and regulations ensured a reduction in the consumption of sugary drinks? These require a careful impact assessment.

In the Draft Law on Special Consumption Tax (amended) being discussed at the 8th Session of the 15th National Assembly, the Government proposed to add taxable subjects to sugary soft drinks, apply mixed tax on tobacco, and increase the Special Consumption Tax rate on alcohol and beer. Accordingly, apply a 10% Special Consumption Tax to soft drinks with sugar content over 5g/100ml, in order to contribute to fighting obesity and protecting people's health.

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